E'Lonte Company began operations this year. During this first year, the company produced 300,000 units and sold 250,000 units. Its income statement under absorption costing for this year follows. $ 0 Sales (250,000 units x $18 per unit) Cost of goods sold Beginning inventory Cost of goods manufactured (300,000 units x $7.50 per unit) 2,250,000 Cost of goods available for sale 2,250,000 Ending inventory (50,000 x $7.50) 375.000 Cost of goods sold Gross margin Selling and administrative expenses Net income is Is Additional Information a. Selling and administrative expenses consist of $1,200,000 in annual fixed expenses and $4 per unit in variable selling and administrative expenses. b. The company's product cost of $7.50 per unit is computed as follows. Direct materials $2.00 per unit Direct labor $2.40 per unit Variable overhead $1.60 per unit Fixed overhead ($450,000/300,000 units) $1.50 per unit Required 1. Prepare the company's income statement under variable costing